5 Mortgage Mistakes That Could Cost You

Buying a home? You can’t afford to make mistakes. A simple mistake could end up costing you a lot of money over the life of your loan so make sure you know these 5 things before finalizing your home purchase.

#1. Know your credit scoreand report.

It’s vitally important to understand your credit history and what others will be looking at when viewing your credit score and report. If you have a credit score under 650 you might want to take a few months to try and increase that number. Credit scores over 700 tend to have better interest rates and better terms for their loan. Even just a few points higher, could offer you a few points a lower on your interest rate, literally saving you thousands if not tens of thousands of dollars over the life of your loan.

#2. Not shopping around.

Not all banks, credit unions and loan officers are the same. You might be saving thousands of dollars by going one direction versus another but unless you shop around you wouldn’t know this. Just like your shopping for a house, you should be shopping for the best home loan for your options. Talk to a loan officer or manager that is familiar with your credit history, score and your financial situation. They will give you options, programs and fees associated with a particular loan. Then what you need to do is take those figures to another bank and see if they can beat it. Don’t worry about getting your credit dinged several times while shopping for a loan; creditors and lenders are aware of this tactic and know that you’ll be shopping around but it could save you thousands.

#3. Not understanding all the costs involved.

There are a lot of costs involved to buying a house. Not only will you have closing costs but you will have the appraisal cost, which is typically $300-$500, the inspection costs, typically $350-$700, and any other expenses with homeownership such as interest, taxes and homeowners insurance. Make sure you are aware of all the costs and fees involved, not just with the initial home loan but with ongoing homeownership so that you’re not surprised and you can prepare for it.

#4. Not understanding the whole process.

It’s vital to educate yourself on the home buying and loan process before jumping in. Knowledge truly is powerful when it comes to buying a home. Understanding the process, the transaction, all the parties involved and more will make you better prepared as a homeowner and make you less stressed. We understanding and knowing what you’re doing will make the process much easier.

#5. Feeling pressured to go with one agent or a loan officer.

Often times when you’ve spent some time with the loan officer you may be obligated to go with them however, if you don’t feel comfortable, simply don’t trust them or you have questions that are not being answered, it’s okay to go somewhere else. Buyers agents on the other hand, spend a lot of time with you so if you don’t feel comfortable, it’s best to let them know up front right away. That way, you can spend the time finding the agent that you really love.

For more information on buying a home or getting along contact our office today. We’d be happy to go over some numbers with you and answer any questions you have about buying within the Brunswick Islands, South Carolina shore and northern parts of North Carolina.

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Jessica Lowery

I love working with Karen and Frank. They are honest, not pushy, and have your best interest in mind. They...

2015-05-12T20:51:52+00:00

I love working with Karen and Frank. They are honest, not pushy, and have your best interest in mind. They will also make you laugh! :) Love these two!!!

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Steve & Jean DeVito

“The Bakers treated us like family during our whirlwind weekend of looking at houses. Prior to our on-site visit to...

2015-03-16T20:17:46+00:00

“The Bakers treated us like family during our whirlwind weekend of looking at houses. Prior to our on-site visit to Sunset Beach they created a portal and populated it with properties that met our ever-evolving criteria. By time we arrived we had a good feel for what we could afford and what was available that met our criteria. The Bakers, especially Karen, were able to make sense of what we thought we were looking for and eventually matched us with a house that we ended up purchasing — Karen called it the “This is it” house and she was right. We are loving our 2nd home and appreciate how painless Karen and Frank made the process. All the paperwork was done seamlessly and quickly and the closing went off without a hitch. The Bakers do not believe in the hard sell — they gave us the knowledge we needed and the guidance we needed to make our dream a reality.”

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Amy and I have bought and sold four properties in the past twelve years. Both of you are the best...

2015-03-16T20:18:22+00:00

Amy and I have bought and sold four properties in the past twelve years. Both of you are the best realtors we have ever dealt with. Amy and I both felt we could trust you to look out for our interest. The level of service you provided was outstanding, from taking the trash out, helping the buyer with inspecting the irrigation system, dealing with our tenants, always being there if we needed to ask a question, providing constant updates on the market and always keeping us informed on the sale of our house. I think your next venture should be training other realtors, because both of you have mastered the art of providing excellent service. I will be sure to recommend the Frank and Karen team to anybody looking for a trust worthy, knowledgeable and top performing realtor. It was a pleasure working with both of you.”

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Ernie & Carol G.

“Karen & Frank Baker are the best. They are very knowledgeable with the area & showed us many homes. When...

2015-03-16T20:18:50+00:00

“Karen & Frank Baker are the best. They are very knowledgeable with the area & showed us many homes. When we made up our minds which one we wanted, they got us the best deal on it. We were very satisfided with them. After the purchased was made & we moved in, they were still there to answer any questions or problems that we might of had. Like I said, they are the BEST.”

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“Thanks again for all the time you spent with us, As overwhelming as it was, you two made it fun”

2015-03-16T20:19:23+00:00

“Thanks again for all the time you spent with us, As overwhelming as it was, you two made it fun”